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Starting in about 2004, ITT Tech came under fire for questionable practices, including allegations of high-pressure recruiting tactics, falsified paperwork, high rates of default on student loans for ITT Tech students, and inadequate educational standards. Following a series of state and Federal investigations, the US Department of Education prevented students from using federally guaranteed student loans at any ITT Tech location effective August 2016. buy fake degre in USA All ITT Tech campuses were closed by September 6, 2016, and on September 16, 2016, ITT Tech filed for bankruptcy.

In 2018, ITT Tech's court appointed bankruptcy trustee sued the US Department of Education and lenders to repay $1.5 billion in claims against ITT, alleging that regulators took advantage of low-income students and neglected their oversight duties.

Students who attended ITT Tech may be able to have their debt forgiven by applying to the US Department of Education for a borrower defense to repayment. However, US Secretary of Education Betsy DeVos announced on July 25, 2018, that the borrower defense rule would be rewritten and replaced with a stricter repayment policy starting July 1, 2019.

On December 13, 2018, a US federal court ruled that the Department's decision to do this was "arbitrary and capricious." The court sided with plaintiffs in invalidating the stay put in place by the Department of Education. There will be an additional hearing on December 14, 2018 to "address remedies.